Blacklist of countries at risk of money laundering: instructions for use

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MEPs will hear details from the EU Commission of their new procedure for identifying non-EU countries thought to be deficient in areas related to money transfers.

The announcement is expected during an exchange of views between the European Commissioner for Justice, Consumers and Gender Equality, Věra Jourová, and the Economic Affairs and Civil Liberties committees.

Ms Jourová should outline the EU Commission’s new procedure for identifying high-risk countries with “strategic deficiencies” in areas ranging from anti-money laundering and counter-terrorism financing, to record keeping.

The two committees rejected the EU Commission’s two previous blacklists, arguing that they drew too closely on the work of the Financial Action Task Force and demanded a more independent compilation process.

The requirement that the European Commission draw up a blacklist list of high-risk non-EU countries falls under a delegated act to the 4th Anti-Money Laundering Directive, which is currently undergoing amendment.

MEPs in plenary rejected a previous European Commission blacklist, because it failed to include countries which were suspected of being involved in tax crimes. The Commission says that they are guided by the criteria listed in the 4th Anti-Money Laundering Directive, which does not explicitly mention the issue.

MEPs said the European Commission’s two previous blacklists were a close copy of that drawn up by the intergovernmental body, the Financial Action Task Force (FATF), which regularly updates their compilation of uncooperative states or those deemed deficient in anti-money laundering or counter-terrorism financing. The FATF register includes countries such as North Korea and Iran, but does not include jurisdictions such as Panama or the Bahamas.